Best & Worst Places to Rent in America

Adam McCann , Financial WriterJul 22, 2020

Adam McCann , Financial Writer
Jul 22, 2020

Homeownership isn’t for everyone. Roughly 43 million American households have opted to rent rather than buy their homes because of convenience, cost or both. But renting isn’t always a cheaper or better alternative to owning a property. The right road to take depends on a variety of factors, including an individual’s or family’s financial means and how well the local real-estate market is doing.

As the COVID-19 pandemic has hit the U.S. this year, rents have experienced “pandemic pricing,” dropping to attract new customers in the difficult market. For most of 2020, average rent prices have been lower than they were last year, though in July they have started to exceed 2019’s rates slightly. At the same time, mortgage rates have seen record lows while home prices have risen.

Like home prices, however, rental rates can vary significantly by region, state or city. And in some places, renting will prove to be more cost-effective and a better overall value than owning.

To determine where renters can get the most bang for their buck, WalletHub compared more than 180 rental markets based on 24 key measures of rental attractiveness and quality of life. Our data set ranges from the difference between rental rates and mortgage payments to historical price changes, the cost of living and job availability. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

1Main Findings 2Ask the Experts

3Methodology

Main Findings

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Best Places to Rent

Overall Rank (1 = Best)	City	Total Score	‘Rental Market & Affordability’ Rank	‘Quality of Life’ Rank
1	Bismarck, ND	61.97	1	72
2	Lewiston, ME	57.98	16	21
3	Lincoln, NE	57.70	23	15
4	Rapid City, SD	56.89	2	120
5	Sioux Falls, SD	56.81	3	113
6	Portland, ME	56.56	62	1
7	Cedar Rapids, IA	56.54	8	69
8	Fargo, ND	56.48	4	96
9	Fremont, CA	55.56	43	17
10	Scottsdale, AZ	55.00	85	3
11	Casper, WY	54.84	12	79
12	Chesapeake, VA	54.59	7	97
13	Boise, ID	54.36	70	8
14	Overland Park, KS	54.34	37	32
15	Billings, MT	54.16	5	133
16	Washington, DC	54.14	20	66
17	Omaha, NE	53.68	21	67
18	Gilbert, AZ	53.66	63	16
19	Columbia, MD	53.56	15	98
20	South Burlington, VT	53.46	75	6
21	Nashua, NH	53.31	57	22
22	Las Cruces, NM	53.22	22	75
23	El Paso, TX	52.96	33	60
24	Virginia Beach, VA	52.86	19	84
25	Chandler, AZ	52.85	74	14
26	Huntsville, AL	52.79	18	85
27	Peoria, AZ	52.46	65	20
28	Newport News, VA	52.08	10	126
29	Colorado Springs, CO	51.99	100	10
30	Irvine, CA	51.56	137	4
31	Albuquerque, NM	51.44	9	123
32	Fort Smith, AR	51.12	6	159
33	Des Moines, IA	51.07	29	91
34	Pittsburgh, PA	50.18	45	78
35	Henderson, NV	49.90	98	31
36	Reno, NV	49.88	87	40
37	Cheyenne, WY	49.85	27	115
38	San Francisco, CA	49.58	83	43
39	Warwick, RI	49.53	88	42
40	Denver, CO	49.48	117	23
41	Manchester, NH	49.46	66	61
42	Austin, TX	48.81	76	59
43	Santa Rosa, CA	48.78	142	9
44	San Diego, CA	48.64	162	2
45	Honolulu, HI	48.47	139	25
46	Glendale, AZ	48.41	109	39
47	Amarillo, TX	48.34	42	110
48	Bakersfield, CA	48.24	54	88
49	Oklahoma City, OK	48.21	44	107
50	Richmond, VA	48.04	32	137
51	Grand Rapids, MI	47.89	86	64
52	Fresno, CA	47.82	48	105
53	Mesa, AZ	47.81	114	41
54	Winston-Salem, NC	47.79	30	150
55	Little Rock, AR	47.75	13	170
56	Jersey City, NJ	47.66	28	138
57	Worcester, MA	47.61	104	52
58	Madison, WI	47.55	60	92
59	Lexington-Fayette, KY	47.53	59	95
60	Raleigh, NC	47.48	39	140
61	Wilmington, DE	47.39	36	136
62	Juneau, AK	47.26	26	154
63	Wichita, KS	47.20	17	157
64	Charleston, SC	47.15	107	58
65	Missoula, MT	47.11	35	149
66	Tampa, FL	47.02	150	13
67	Plano, TX	46.99	132	35
68	Nampa, ID	46.97	106	62
69	Phoenix, AZ	46.96	118	51
70	Huntington Beach, CA	46.90	159	5
71	Tempe, AZ	46.76	111	56
72	Greensboro, NC	46.72	34	141
73	San Antonio, TX	46.71	61	103
74	Norfolk, VA	46.57	25	156
75	Orlando, FL	46.55	140	36
76	Springfield, MO	46.49	11	177
77	Corpus Christi, TX	46.47	41	125
78	New York, NY	46.46	123	54
79	Las Vegas, NV	46.43	130	45
80	Louisville, KY	46.43	46	132
81	Rancho Cucamonga, CA	46.35	147	18
82	Tucson, AZ	46.28	92	82
83	Aurora, IL	46.28	73	100
83	Burlington, VT	46.28	116	63
85	Minneapolis, MN	46.25	113	65
86	Chula Vista, CA	46.19	154	19
87	Buffalo, NY	45.86	52	121
88	Arlington, TX	45.79	93	89
88	Durham, NC	45.79	49	129
90	Fontana, CA	45.65	133	46
91	Grand Prairie, TX	45.57	134	48
92	Aurora, CO	45.50	134	57
93	Fort Worth, TX	45.48	97	87
94	Spokane, WA	45.35	68	114
95	St. Louis, MO	45.26	24	168
96	Modesto, CA	45.24	78	104
97	Kansas City, MO	45.23	55	134
98	Rochester, NY	45.21	90	102
99	Jacksonville, FL	45.20	122	68
100	Philadelphia, PA	45.19	56	131
101	Montgomery, AL	45.16	50	152
102	Mobile, AL	45.13	40	160
103	Providence, RI	45.09	80	106
104	Houston, TX	44.89	53	146
105	St. Petersburg, FL	44.57	149	44
106	Pearl City, HI	44.55	155	26
107	Cincinnati, OH	44.54	77	111
108	West Valley City, UT	44.37	115	83
109	Oakland, CA	44.17	84	117
110	Riverside, CA	44.15	136	70
111	St. Paul, MN	44.15	129	77
112	Sacramento, CA	44.08	171	24
113	Fort Wayne, IN	44.07	64	139
114	Columbus, OH	44.03	95	108
115	Portland, OR	44.02	131	76
116	Yonkers, NY	43.99	153	34
117	Oxnard, CA	43.81	152	50
118	Anaheim, CA	43.68	169	30
119	Glendale, CA	43.60	172	12
120	Santa Clarita, CA	43.47	161	33
121	Chattanooga, TN	43.41	81	130
122	Milwaukee, WI	43.41	38	171
123	Birmingham, AL	43.37	69	147
124	Anchorage, AK	43.36	14	181
125	Baltimore, MD	43.29	31	176
126	Salt Lake City, UT	43.27	105	109
127	North Las Vegas, NV	43.19	127	94
128	Charlotte, NC	43.13	58	158
129	Pembroke Pines, FL	43.09	168	29
130	Columbia, SC	42.99	51	165
131	San Jose, CA	42.97	166	37
132	Brownsville, TX	42.97	91	135
133	Garden Grove, CA	42.90	176	7
134	Nashville, TN	42.87	102	116
135	Boston, MA	42.87	175	27
136	Dover, DE	42.80	89	144
137	Ontario, CA	42.47	160	47
138	Salem, OR	42.44	108	119
139	Oceanside, CA	42.38	177	11
140	Tulsa, OK	42.31	98	127
141	Chicago, IL	42.17	79	153
142	Seattle, WA	42.13	148	73
143	Atlanta, GA	42.07	145	81
144	Moreno Valley, CA	42.00	146	74
145	Long Beach, CA	41.98	170	49
146	Baton Rouge, LA	41.90	94	145
147	Irving, TX	41.86	141	99
148	Knoxville, TN	41.21	103	148
149	Lubbock, TX	41.17	67	164
150	Los Angeles, CA	41.12	173	55
151	Cape Coral, FL	40.96	179	28
152	Vancouver, WA	40.95	156	71
153	Laredo, TX	40.84	120	128
154	Fayetteville, NC	40.75	47	180
155	Columbus, GA	40.75	71	169
156	Port St. Lucie, FL	40.61	178	38
157	Charleston, WV	40.42	96	163
158	Tallahassee, FL	40.15	126	143
159	Shreveport, LA	40.05	101	161
160	Garland, TX	39.35	164	93
161	Stockton, CA	39.32	138	142
162	Akron, OH	39.15	110	162
163	Dallas, TX	39.09	151	112
164	Santa Ana, CA	39.01	180	53
165	Indianapolis, IN	38.72	72	178
166	Newark, NJ	38.63	128	155
167	Fort Lauderdale, FL	38.56	163	101
168	Bridgeport, CT	38.23	174	86
169	Toledo, OH	37.90	112	166
170	New Orleans, LA	37.70	144	151
171	New Haven, CT	37.56	157	122
172	San Bernardino, CA	37.44	158	124
173	Tacoma, WA	37.07	165	118
174	Augusta, GA	37.03	121	175
175	Gulfport, MS	36.94	125	172
176	Jackson, MS	36.71	119	174
177	Miami, FL	35.81	181	80
178	Detroit, MI	34.80	124	179
179	Cleveland, OH	34.74	143	173
180	Memphis, TN	34.55	82	182
181	Huntington, WV	32.96	167	167
182	Hialeah, FL	32.02	182	90

Ask the Experts

Finding a suitable rental unit is a similar process to buying a home. Your search may be based purely on cost or also on needs, such as the number of bedrooms or close proximity to work. For guidance, we asked a panel of experts to share their thoughts on the following key questions:

What tips do you have for a person looking to get the best value in an apartment?
What are the most common mistakes that renters make when searching for a new apartment?
In evaluating the best and worst cities for renters, what are the top five indicators?
What listing details have become more important when searching for a place to rent during the current economic crisis?
Are the fastest growing cities a good place for renters? Why?
How can local policymakers make housing more affordable for renters without upsetting homeowners?

Ask the Experts

Methodology

In order to determine the best local rental markets, WalletHub compared 182 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state — across two key dimensions, “Rental Market & Affordability” and “Quality of Life.”

We evaluated those dimensions using 24 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for renters. Data for metrics marked with an asterisk (*) were available at the state level only.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area.

Rental Market & Affordability – Total Points: 60

Share of Renters: Full Weight (~2.79 Points)
Note: This metric specifically measures the share of renter occupied housing units among total occupied housing units.
Rental Vacancy Rate: Full Weight (~2.79 Points)
Sublet Laws-Friendliness*: Full Weight (~2.79 Points)
Average Home Square Footage: Half Weight (~1.40 Points)
Share of Newer Homes: Full Weight (~2.79 Points)
Note: “Newer Homes” include housing units built between 2010 and 2018.
Rental Affordability: Triple Weight (~8.37 Points)
Note: This metric was calculated as follows: Median Gross Rent / Median Annual Household Income.
Share of Apartment Community Pillar Listings: Full Weight (~2.79 Points)
Note: A Community Pillar landlord has agreed to relax their standard tenant screening process in order to help applicants with potential rental barriers—such as low incomes, spotty credit scores, unemployment, or lack of housing references—be able to obtain housing.
Historical Rental-Price Changes: Triple Weight (~8.37 Points)
Note: This metric specifically measures the year-over-year change in rent prices (2020 vs. 2019 vs. 2018).
Forecasted Change of Median Rent: Double Weight (~5.58 Points)
Share of Severely Cost-Burdened Renter Households: Full Weight (~2.79 Points)
Note: “Severely Cost-Burdened Renter Households,” as defined by the U.S. Department of Housing and Urban Development, refers to consumers who spend at least 50 percent of their income on housing.
Average Annual Renters-Insurance Premium*: Full Weight (~2.79 Points)
Rent-to-Price Ratio: Full Weight (~2.79 Points)
Cost of Living: Triple Weight (~8.37 Points)
Buy vs Rent Breakeven Horizon: Full Weight (~2.79 Points)
Note: The “breakeven horizon” is defined by Zillow as the point, in years, at which buying a home becomes less expensive than renting the same home.
Security-Deposit Limit*: Full Weight (~2.79 Points)
Note: This metric measures the maximum security-deposit amount that landlords are allowed to charge in the state. A lower amount is ideal for renters.

Quality of Life – Total Points: 40

- City Satisfaction Ranking: Full Weight (~4.00 Points)
- Job Market: Full Weight (~4.00 Points)
  Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking.
- Driver-Friendliness: Half Weight (~2.00 Points)
  Note: This metric is based on WalletHub’s “Best & Worst Cities to Drive in” ranking.
- Recreation-Friendliness: Full Weight (~4.00 Points)
  Note: This metric is based on WalletHub’s “Best & Worst Cities for Recreation” ranking.
- Weather: Half Weight (~2.00 Points)
  Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking.
- Quality of Public School System: Half Weight (~2.00 Points)
  Note: This metric is based on GreatSchools.org’s ratings of U.S. public schools.
- Safety: Double Weight (~8.00 Points)
  Note: This metric measures the violent- and property-crime rates.
- Presence of State Bedbug Laws*: Half Weight (~2.00 Points)
  Note: This binary metric measures the presence or absence of bedbug laws in the state. Bedbug laws address bedbug infestations in rental properties.
- WalletHub's "States Offering the Most Coronavirus Support" Score*: Triple Weight (~12.00 Points)
  Note: This metric is based on WalletHub's "States Offering the Most Coronavirus Support" ranking.

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Council for Community and Economic Research, Zillow, Harvard Joint Center for Housing Studies, Insurance Information Institute, Department of Housing and Urban Development, Flex Zone, Gallup, Federal Bureau of Investigation, Regents of the University of California, GreatSchools.org, NOLO and WalletHub research.

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